$6.99 Billion Offers and 77% Surge in Residential Gross sales by FY25, ETCFO

India’s housing market has made a powerful comeback for the reason that pandemic, recording sturdy progress by varied segments, particularly over the previous yr, in keeping with a Grant Thornton report.

Between FY 2019 and FY 2025, residential gross sales in main cities jumped by practically 77%, reflecting rising purchaser confidence. In FY 2025, main gross sales, which principally contain under-construction properties, accounted for 57% of all transactions, up from 62% in FY 2019, whereas secondary gross sales rose to 43%.

Luxurious housing continued its upward climb, pushed by rising incomes and altering way of life preferences. Houses priced above Rs. 1 crore noticed sturdy demand, supported by targeted developer efforts and aspirational consumers.

Reasonably priced housing, however, confirmed combined indicators. Whereas gross sales fell by 9% year-on-year in Q1 2025, unsold stock dropped by 19%, suggesting a gentle absorption pattern. New launches on this class remained subdued as builders pivoted towards premium choices.

Business, Industrial and Warehousing Developments

The workplace market witnessed a notable restoration in FY 2025, with leasing exercise reaching document ranges. Demand surged throughout Tier 1 cities and rising Tier 2 hubs, fuelled by World Functionality Centres (GCCs), IT/ITES corporations, versatile workspaces, and e-commerce gamers.

In the meantime, the commercial and warehousing section continued its enlargement, supported by 3PL suppliers, the ‘Make in India’ initiative, and rising demand for contemporary logistics infrastructure.

PE & M&A Inflows

The sector attracted sturdy capital inflows in FY 2024-25, with a complete of 99 offers price practically USD 6.99 billion. Personal fairness remained the first funding channel for this, contributing USD 3.15 billion throughout 48 offers.

Mergers and acquisitions additionally noticed a pointy uptick, with 36 offers amounting to USD 619 million, reflecting a pattern towards strategic mid-sized consolidations.

Capital markets exercise equally mirrored this sturdy progress. IPOs and Certified Institutional Placements (QIPs) collectively raised round USD 2.99 billion, reflecting sturdy institutional curiosity in business, retail, and logistics property. Notably, QIP exercise was notably sturdy, highlighting investor urge for food for high quality actual property portfolios.

Rising Developments: SM REITs, Proptech & ESGThe rise of small and medium REITs (SM REITs) opened new pathways for fractional possession, giving particular person traders entry to high-quality actual property. Moreover, early-stage proptech, co-living, and ESG-aligned property are gaining floor as new funding frontiers.

Trying forward, the momentum is anticipated to proceed into FY 2025–26, with elevated platform-based investments, deeper know-how integration, and a stronger give attention to sustainable, future-ready property.

Challenges stay

Regardless of the optimism, the sector continues to face hurdles, together with regulatory complexity, rising enter prices, and liquidity pressures, notably for smaller builders. Whereas reforms like RERA and GST have improved transparency, ongoing coverage assist and simpler financing entry are essential for long-term stability.

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